Executive Summary
Mission Statement
Genesis Entertainment is a modern entertainment business that focuses on exceptional rap music, merchandise, and entertainment normally overshadowed by the mainstream ideologies. The entertainment business aims to bring music joy to the individuals of all the ages, provide services, which exceeds customers’ expectations, and quality products at pocket friendly prices. What’s more, Genesis Entertainment aims to offer fair compensation to its members of staff and a fair return to the owner.
Goals
- Create a steady revenue stream from sales of the new album, ‘Genesis’, merchandising, digital sales, and live performances.
- Establish and grow the corporation into a complete service record label, multimedia and merchandising company.
- Market and promote the new album both nationally and internationally.
Key to Success
- Focus on the internet presence as well as building a strong foundation for a popular web brand.
- Ensure that products for the new music album (tapes, CDs, and others) are delivered on time, promotional and marketing budgets are monitored, effective management of the financials, and development of successful strategies for growth.
- Focus on creating a reliable stream of high quality rap songs and rap music related products.
- Solve problems by using promotional, marketing, and advertising budgets.
Financial Requirements
Business/Project Description
The idea of creating the new rap album came up after realizing that I had an inborn talent of rapping. After brainstorming, I decided that it is crucial to utilize my talent by creating a unique rap album, and I decided to name it ‘Genesis,’ which is also the name of the business. Regarding the management of the business, the management style of the business will be democratic leadership, where the management will take into account all the opinions of junior staffs and realize a consensus before reaching a final decision.
The unique thing about the genesis album is that it will be available everywhere that digital music can essentially be streamed and bought such as on Spotify and iTunes. Thus, this will ensure that we deliver the products on time and create a reliable stream of high quality rap songs and rap music related products to our esteemed customers. Since Genesis album is a self-designated music project, the business structure will be a sole proprietorship.
Products and Services
The sources of income for Genesis Entertainment include but not limited to the below list of services and products:
- Live Performances
- Retail sales of DVD’s, CD’s, and the other multimedia formats
- Sales of tour books, jackets, T-Shirts, and the other promotional merchandise
- Fees and loyalties from the performances of recordings on television and video, in commercial venues like nightclubs and restaurants, in movies, and on the internet.
Live Performance
The business will focus on the relationships with the booking agents and venues of live performance as an advertising and marketing supplement to merchandising sales and drive record.
Recorded music
I will spend a big portion of my creativity energy on writing rap songs lyrics and composing the music. Thus, the business commits to creating and recording a sound stream of high quality rap music for the public consumption in the future. The business will sell the DVD’s, mp3’sand CD’s of the current album to retail chains, rap stores, over the internet through numerous offline and online distributors and aggregators, and at live shows. Additionally, the business will sell the digital music on the new album in the following formats: Full Track Downloads, Complete Album Downloads, Ringback Tones, Polyphonic Ringtones, and Mobile OnlyFull Track Downloads. The business plans to make the items available through the structured licensing agreements with the recognized online retails (Spotify, iTunes, Rhapsody, and EMusic).
Merchandising
The business will produce and manufacture a great variety of merchandise at lowest potential costs. It worth mentioning that when each piece of merchandise will be sold, it will become an existing piece of advertising for the Genesis album, hence this will help to generate a dual advantage for the business and its customers. The items that the business will produce and manufacture will include but not limited to: Posters, CDs, T-Shirts, Jackets, Sweatshirts, among other collectibles.
Licensing
As the owner of the new album, I am assured a particular bundle of rights by the law. Since I own all the rights, any person who will wish to use my songs in the current album should first get my authorization. A TV show or film will only need to borrow two of the following rights: the right to utilize the underlying composition, which the rap songs in the album are based on and the right to use the genuine recording (my masters). The authorization that I will bestow them to utilize the songs in the album will be tendered in the contract known as a synchronization license. The authorization that I will grant them to use the songs will essentially be tendered in a contract form known as the master – use license.
Marketing Plan
Before generating the marketing plan for a new rap album, I will first have a grasp of music publishing, record company structures, distribution along with music media, recording contracts, and how all the mentioned things work together to bring music to the individuals. Thus, I will learn about the music industry through reading trade magazines, taking courses, and talking with the industry individuals. In marketing the ‘Genesis’ album, the business will use four basic offline and online mediums including Retail, Reviews, Radio, and Road. The business will utilize the strategies in this plan to attack all the four principles all together over the course of the coming three years (Schwartz, 2009). The importance of utilizing these strategies is that it will establish the true value of the music album as well as the business validity. To get the most of the 4 mediums, the employees and I will prepare a professional and polished press kit and update the online presence of the business at first. The professional press kits will include:
- CD Manufacturing- The business will create the professionally manufactured CD’s for the songs in the album, which will provide print and radio publications a physical copy of the songs in the album.
- Photo Shoot- We will carry out a complete service digital photo shoot to give high resolution images for the business’s online and offline MySpace page, Press Kits, and Blog.
- Download Cards- Just like iTunes, the business download cards will have a unique download code, which we will enter on the website to collect the data regarding fan downloading.
- Biography- We will write a one page professional biography to provide radio, fans, and press with a full succinct story behind the music in the album.
- Electronic Press Kit- Together with the staffs, we will create and maintain an online version of the business’s press kit to let for easy access to the journalists, bloggers, among press channels to cover the album.
Online Presence
I will ensure that the project online presence is effective, full, and will have all the vital promotional tools. I will participate in the social media. The benefit of participating in the social media is that I will have an opportunity to take the advantage of the fresh online tools that may enhance the current music project. The five crucial sites will include YouTube, Facebook, an Official Website, Genesis Entertainment business Blog, and MySpace layout.
- YouTube- This will be a vital piece for the online presence of the album. Thus, it will be crucial to have a video up on You Tube site for each song in the album by the date of release.
- Facebook- I will create a Facebook Fan Page to access additional fans. The new timeline will have three tabs, which will be on the display; one tab will be a newsletter sign up form, which will provide an inducement for signing up. The next will be a profile, which will have information about me, press quotes, and tour dates.
- Official Website- The website will have a place where the customers will listen to and purchase my music. It will also have a homepage, which will have a news section where the customers will read the current happenings with my rapping career. In addition, the website will have a newsletter sign up form where the customers will sign up. The other thing that the website will have is my contact information.
- Genesis Entertainment business Blog- We will design and publish a new blog layout to www.genesisentertainment.com. We will update the blog with album videos, mp3’s, pictures, and business commentary on a weekly basis. The importance of the blog is that it will function as a two means communication between the business and its fans.
- Modified MySpace layout- We will design and publish s new layout at http://www.myspace.com/genesisentertainment to maximize the brand exposure and experience of the customers.
After completing the updated online presence and professional press kit, the business will then present the products to the mentioned mediums.
Marketing Strategy
Retail marketing
In marketing the ‘Genesis’ album, the business will employ retail marketing. The initial step will involve building an inclusive list of music blogs, which make sense for the entire business. Then, the business will service online record stores such as Amazon mp3, Rhapsody, iTunes, eMusic, and others with present releases, point of buying advertising, and promotional material. It will cost the business 100 dollars per month to distribute its products.
Radio campaigns
The business will try as much as possible to promote the album effectively to the commercial radio. Nonetheless, there will be a need to have an independent radio advertiser (King & Feist, 2009). Together will my staffs, we will assist the radio promoter in his/her efforts through creating a full list of the station information. Thus, we will provide the DJ’s, Marketing Director, and Promotions Director with full length CDs of the album. What’s more, we will update the right radio workforce with all the information about new developments (flyers, posters, T-Shirts, upcoming concerts, new releases, special promotions in the region, and others). The business will pay the radio promoter 500 dollars per month. The business will also use popular online services to market the new album to the radio, which will cost 1,000 dollars per month.
Road
Because the majority of my fans are youths, we will maximize the number of paid concerts per year by joining the National Association of Campus Activities. The importance of these shows is that we will sell the merchandise and provide concert/ Genesis album reviews in print. The business will use the online booking organizations to discover the high profile and paid shows, which will cost 500 US dollars per month.
Reviews
The business will try as much as possible to promote the album efficiently in the press. Nevertheless, we will require a full time publicist that we will pay 500 dollars per month. The role of the professional publicist will be to secure reviews and interviews in offline and online publications. To assist the publicists, we will have to compile a list of suitable press accounts in local newspapers and magazines, media and online press, fanzines, among others. Music fans like reading auto or fashion magazines, and thus our list will also include these magazines. In evaluating our publicity and press efforts, we will monitor as well as track the concert reviews, album (Genesis), besides features and interviews concerning the business label.
The Street Team
The street team will be a central part of the business marketing plans. The team will thus supplement the efforts of radio promoter, publicist, and managers. To finance the street team appropriately, we will need 300 dollars per month.
Management plan
For the project to succeed, I will require a strong management team. In addition, the project will need a good management plan that will help in the realization of goals. Therefore, the management plan must clarify the responsibilities and roles of every staff at Genesis Entertainment so that every staff member will know what he/she is supposed to do. Additionally, a good management plan will help to divide the work in equitable and reasonable ways and increase accountability both internally and externally (Allen, 2011). What’s more, a good management plan will help the business to define itself through successful marketing and promotion of the Genesis album. The management model will be a democratic hierarchy. The final authority will still exist at the top (overall project manager), but the managers at all the levels will confer with those that will be affected prior to making decisions. The advantage of this model is that it will allow all the staff the power to supervise their individual work and encourage incentive (Scott & Scott, 2011). The management team will be composed of the overall project manager, production manager, sales and marketing manager, personnel manager, and finance manager.
The project manager will be responsible for the overall activities of the business. The production manager will be responsible for the production of the songs. The sales and marketing manager will be responsible for concerts programming and marketing the album. Finally, the personnel manager will be responsible for employees’ affairs including salaries and remunerations, firing and hiring of employees, among other activities. The finance manager will manage the finances of the business. In addition, the finance manager will keep the books, manage the money that the album and related merchandise will generate, and be responsible for financial planning. All the five managers will work together continually for the music project to be successful. In the case of any dispute, all the managers and myself will make the necessary decisions together. The junior staff will contact the management directly regarding the issues within the business. The human resources manager will resolve the disputes among the staff. The advantage of the management model that the business will use is that the management, staff, and I will agree on how the project will be run.
Financial Plan
A wonderful project plan cannot go anywhere without the capital investment. A financial plan will help in determining the direction that the project will be heading (Spellman, 2000). The plan will help me to generate a strategy for repaying the loan. This section will thus comprise two crucial parts including the financial required and current financial projection for the project.
Financing Required
The music project will be funded by a loan from the bank and personal savings. To market the new music project fruitfully, the project seeks a capital infusion of 100, 000 US dollars. This cash will essentially be used to cover all the costs related to generating a reliable stream of the new music project and associated products, marketing and promoting the new album. The money will also provide the working capital that is crucial to establish as well as, grow the corporation into a successful multimedia business in future. I will refund the loan balance within a span of about three years. Besides, the business will start repaying the loan interest at 500 US dollars in every month.
Current Financial Projection
The financial projections will form the crucial part of the music project plan. They will offer an idea of where the project is going. The financial projections for the project will include but not limited to the start up costs, break even analysis, and balance sheet as presented in the appendix’s page.
References
Allen, P. (2011). Artist management for the music business. Amsterdam: Focal Press.
King, M., & Feist, J. (2009). Music marketing: Press, promotion, distribution, and retail. Boston, Mass: Berklee Press.
Schwartz, D. D. (2009). Start & run your own record label: Winning marketing strategies for today's music industry. New York: Billboard Books.
Scott, D. M., & Scott, D. M. (2011). The new rules of marketing & PR: How to use social media, online video, mobile applications, blogs, news releases, & viral marketing to reach buyers directly. Hoboken, N.J: John Wiley & Sons.
Spellman, P. (2000). The self-promoting musician: Strategies for independent music success. Boston, MA: Berklee Press.
Appendices
Appendix 1: Current Financial projections for The Genesis Entertainment
Start up Costs for The Genesis Entertainment
ITEM QUANTITY COST
Design Services
CD Eco Wallet 1 $ 350.00
Logo 1 $ 350.00
Opening Inventory
10*18 Posters 500 $ 375.00
T-Shirts 200 $ 300.00
Jackets 100 $ 200.00
Download Cards 2000 $ 680.00
CD’s in Jewel Cases 1000 $ 370.00
Internet presence
Blog Creation 1 $ 350.00
Photo Shoot 2 $ 150.00
Biography 1 $ 300.00
Customized MySpace Page 1 $ 250.00
Bandcamp Customization 1 $ 500.00
Electronic Press Kit 1 $ 150.00
Equipment
High Resolution Video Phone 2 $ 1000.00
Mac Book pro 1 $ 1600.00
Registration fees
National Assoc. of Campus Activities $ 150.00
Copyrights 3 $ 800.00
Total Start Up Cost $8,550.00
Working Capital $ 91,500.00
Total Capital Needed $ 100,050.00
Balance Sheet for The Genesis Entertainment
Assets Liabilities and Owners’ Equity
Liabilities
Cash $ 600
Accounts Receivable $ 800 Credit Card Payables $ 8,000
Total Liabilities $ 8,000 Computers and equipments $ 12,000 Owner’s Equity
Capital Stock $ 5,400
Total Owner’s Capita $ 5,400
Total $ 13,400 Total $ 13,400
Break Even Analysis for The Genesis Entertainment
Cost Description Costs/Month
Variable Costs
Cost of Product sold $ 50
Fixed Costs
Rent $ 2,000
Insurance $ 200
Interest $500
Utilities $ 400
Advertising and promotion $ 2,100
Salaries $ 2,300
Total Costs $ 7,550
Price Per Unit $ 20.00
Appendix 2: Bibliography
Allen, P. (2011). Artist management for the music business. Amsterdam: Focal Press.
King, M., & Feist, J. (2009). Music marketing: Press, promotion, distribution, and retail. Boston, Mass: Berklee Press.
Schwartz, D. D. (2009). Start & run your own record label: Winning marketing strategies for today's music industry. New York: Billboard Books.
Scott, D. M., & Scott, D. M. (2011). The new rules of marketing & PR: How to use social media, online video, mobile applications, blogs, news releases, & viral marketing to reach buyers directly. Hoboken, N.J: John Wiley & Sons.
Spellman, P. (2000). The self-promoting musician: Strategies for independent music success. Boston, MA: Berklee Press.
Appendix 3: Marketing Plan
